Continued success of subscription model as it becomes the largest profit and revenue contributor
On track to meet or exceed 2025 targets
BARCELONA, Spain, Aug. 31, 2023 /PRNewswire/ — eDreams ODIGEO (hereinafter ‘eDO’ or ‘the Company’), the world’s leading travel subscription company and one of Europe’s largest e-commerce firms, today released its results for Q1 FY24 ended 30 June 2023. The Company achieved yet another quarter of outperformance, again powered by the strength of its subscription-based model with growth across all key metrics; profits, revenues and subscribers all surged. Prime, the world’s first and largest travel subscription platform, remains the primary driver for the Company’s growth as it continued to outperform outstandingly, with its membership base growing by 47% to 4.7 million members in Q1 of the fiscal year, and totalling 4.9 million members today[1].
The Company’s continued and effective strategic execution brings it ever nearer to achieving its self-imposed targets for 2025: greater than 7.25 million Prime members, around €80 ARPU (Average Revenue Per User) and Cash EBITDA in excess of €180 million.
RESULTS HIGHLIGHTS
Subscription model continues to drive significant improvements in profitability
– As guided previously, the maturity of Prime members is the most important driver for profitability and this has resulted in substantial improvements in profitability as more Prime members renew their memberships and are in year two or beyond of their subscription.
– Cash EBITDA more than doubled to €29.4 million, against €14.0 million reported in Q1 of fiscal year 2023. Cash EBITDA Margin increased dramatically by 9 percentage points year-on-year.
– Cash Marginal Profit stood at €52.0 million, up 55%, and the margin had a 10 percentage points improvement year-on-year.
– Revenue Margin – excluding Adjusted Revenue Items – and Cash Revenue Margin increased by 8% and 5%, respectively year-on-year, following the successful expansion of the Prime Member Base, despite the context of an industry moving to more normalised seasonality patterns.
Prime continues to outperform
– The world’s first and largest travel subscription platform, Prime, continues to improve the quality of the business and grows strongly. Membership grew by 47%, reaching 4.7 million at the end of Q1 and topping 4.9 million in August[2].
Well on track to meet self-imposed 2025 targets
Greater than 7.25 million Prime members
Prime ARPU (Average Revenue Per User) of €80, approximately
Cash EBITDA in excess of €180 million.
Dana Dunne, CEO of eDreams ODIGEO commented: “We have achieved a stellar start to our fiscal year, results that directly reflect the success of our strategic and innovative approach and the dedication of our talented team. Our investments and decisions are clearly bearing fruit, putting us in an optimal position to expand further. With 2025 only 18 months away, we are now looking beyond our once-seen-as-ambitious 2025 targets, which are now well within reach thanks to the excellent operational and strategic execution of our plans.
“In 2017, we introduced our Prime subscription programme, setting us apart from traditional travel companies. While industries like supermarkets (Costco) or video streaming (Netflix) had successfully embraced subscriptions long ago, the travel industry had not ventured into this territory until we took the lead. Today, our results demonstrate our success, with most of our revenues and profits now being derived from this segment. We are now unequivocally a subscription company. As a result, we are introducing a new reporting breakdown, aligned with similar subscription businesses, thus enabling our key stakeholders to better understand our progress.
“This performance is deeply rooted in our ever-increasing tech capabilities. As we continue to strengthen our tech powerhouse, notably in the field of AI, we have emerged as a leader not only in the travel sector but also in the broader e-commerce industry, blazing a trail for others to follow. As we chart the path forward, we do so with increased confidence in the boundless opportunities that await us.”
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[1] As of 22nd August 2023
[2] As of 22nd August 2023
SOURCE eDreams ODIGEO
